USAR 1W - key confluence zone on the weekly chart

USAR

Price has returned to the $14.70–$15.64 range, which previously acted as the main resistance throughout the 2024–2025 cycle. After the breakout, the market is now forming the first full retest of this area, now as potential support.

Several technical factors are converging in this zone:
previous resistance now acting as potential support, 50% Fibonacci retracement of the entire upward impulse, 100-period moving average on the weekly timeframe, and RSI and Stochastic in deeply oversold territory after the decline.

This combination creates an area of increased interest for buyers.

Aggressive entry during a continuing decline carries elevated risk. A more rational approach is to wait for confirmation on lower timeframes and the formation of a reversal structure within the zone.

Near-term resistance sits at $20.07. The next key target is around $27.67, where intermediate supply is located.

From a technical perspective, the market is now at a point where risk and potential reward are beginning to form an asymmetric opportunity.